The only way is down when it comes to Bognor Regis lease terms. Bognor Regis leaseholds that have a lease term fewer than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will go up.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service gives you better control over the value of your Bognor Regis leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Callum was the the leasehold proprietor of a conversion flat in Bognor Regis being sold with a lease of a little over 59 years unexpired. Callum on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and secured an acceptable resolution informally and readily saleable.
Ms Katherine Brooks was assigned a lease of a basement flat in Bognor Regis in July 2000. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable residencies in Bognor Regis with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 collected yearly. The lease came to a finish on 20 September 2105. Given that there were 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
Last Spring we were approach by Dr Alexandra Ricardo , who completed a basement apartment in Bognor Regis in October 1999. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Bognor Regis with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease ran out in 2094. Considering the 69 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.